Oman's GDP grows to RO 17.044 billion in H1 2023

MUSCAT: The Sultanate of Oman's gross domestic product (GDP) at constant prices reached RO 17.044 billion in the first half (H1) of 2023, reflecting a slight increase compared to RO 16.700 billion recorded in the same period of the previous year, according to the latest data released by the National Centre for Statistics and Information (NCSI). The H1 2023 figures indicate a growth rate of approximately 2.1% year-on-year.

The second quarter (Q2) of 2023, however, witnessed a slight decline in Oman's GDP at constant prices compared to Q2 2022. The figure stood at RO 8.431 billion, marginally lower than the RO 8.448 billion recorded in Q2 2022. This slight decline in Q2 indicates a decrease of around 0.2% year-on-year.

Breaking down the GDP figures into petroleum and non-petroleum activities reveals an interesting trend. In H1 2023, petroleum activities contributed RO 5.757 billion to the GDP, exhibiting growth when compared to the RO 5.680 billion recorded in H1 2022. This represents an increase of approximately 1.4% year-on-year. This positive trend can be attributed to stable global oil prices and stable production levels.

The NCSI data shows petroleum activities in Q2 2023 alone generated RO 2.927 billion, a slight decline of 0.7% from last year’s Q2 with RO 2.947 billion.

On the other hand, non-petroleum activities experienced more substantial growth in the same period. The non-petroleum sector contributed RO 11.824 billion to the H1 2023 GDP, representing a notable increase from the RO 11.576 billion recorded in H1 2022. This positive development amounts to a growth rate of approximately 2.1% year-on-year. Within the non-petroleum sector, both the industry and service sectors performed well.

For Q2 2023, non-petroleum activities contributed RO 5.830 billion, a 0.1% increase during the same period last year with RO 5.823 billion.

The industry sector accounted for RO 3.144 billion in H1 2023, demonstrating a modest increase from the RO 3.130 billion reported in H1 2022. This growth equates to an expansion of approximately 0.4% year-on-year. This growth can be attributed to increased manufacturing activities and investments in industrial infrastructure.

In contrast, the service sector experienced more significant growth during the same period. The service sector contributed RO 8.277 billion to the H1 2023 GDP, surpassing the RO 8.059 billion recorded in H1 2022. This remarkable growth represents an increase of approximately 2.7% year-on-year, indicating the sector's resilience and potential for continued expansion. The service sector's growth was driven by various sub-sectors, including wholesale and retail trade, transportation, telecommunications, real estate, education and health, among others.

In the financial intermediaries, H1 2023 saw a slight improvement in performance. The financial intermediaries reported a deficit of RO 349.5 million, an improvement from the previous year's deficit of RO 355.4 million. Although the improvement is modest, it indicates progress in the financial sector's stability and recovery.

Furthermore, taxes less subsidies on products showed a slight improvement in H1 2023, amounting to a deficit of RO 186.9 million, compared to a deficit of RO 200.8 million in H1 2022. This improvement may indicate adjustments in the tax structure and government subsidy policies, affecting the overall revenue and expenditure patterns within the economy.